FG Begins New Retirement Benefit as 175 Retirees Receive N1.1bn
The Federal Government has commenced payment of the Additional Exit Benefit (AEB) to retirees of Treasury-funded Ministries, Departments and Agencies (MDAs), with N1.1 billion already paid to 175 retirees who exited the Federal Public Service between January and August 2026.
The benefit is provided under the Federal Government Exit Benefit Scheme, approved by the Federal Executive Council and effective from January 1, 2026.
Under the scheme, Federal Civil Servants who have served for at least 10 years are eligible for an Exit Benefit equivalent to 100 per cent of their total annual emolument at retirement.
The 2026 Appropriation provided N32.9 billion for the scheme, while the Federal Government has so far released N12.3 billion into the dedicated Exit Benefit Scheme Account with the Central Bank of Nigeria.
PenCom is working with relevant government agencies and Pension Fund Administrators to verify retirees’ records and facilitate payment. Once approved, the benefit is credited to the retiree’s Retirement Savings Account before being transferred to their designated salary account.
The Additional Exit Benefit is separate from the retiree’s existing pension and RSA balance, providing an added layer of financial support as Federal Civil Servants transition into retirement.
